Getting in the audit zone

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If you're the Finance Director of a larger business, you may well be comfortable with the whole audit process. But how do you actually maximise its value? Here are seven suggestions from audit partner, John Wallis, at Page Kirk.

The more strategic and proactive you are with audit, the more your business can get out of it. And the larger your company, the bigger a difference some advance thinking can potentially make. Here are my top recommendations for getting the most out of the process:

Choose your audit partner wisely

This would always be my starting point. Your auditor needs a deep understanding of your industry, so they can provide real insights as well as help with compliance. They also need a solid reputation and adequate resources to work with a business of your size and complexity.

Start the planning early

Avoid last-minute pressure and engage with your auditors early on. Set clear objectives beyond the usual statutory requirements and maintain an open line of communication throughout the audit process.

Prepare thoroughly

Make sure your finance team is well prepared in terms of documentation, financial reports and internal records. Review key risks and controls, so you can discuss their effectiveness and ensure your financial systems can provide the necessary data for the audit.

Enhance internal controls

If you conduct an internal audit, you can get ahead of any issues that might arise in the external one. See if you can strengthen your internal controls and governance structures, as your auditors will undoubtedly be reviewing them closely.

Focus on insights beyond compliance

Why not use benchmarking to see how you compare to industry peers? Your auditor may well have access to data. You can also focus strategically on opportunities for improving business processes, reducing costs and managing risk.

Make use of technology

Advanced data analytics and technology are now very often part and parcel of the audit process. They can help you generate deeper insights into your business performance.

Follow up the audit

Review your management letter carefully, as it should outline areas of concern and recommendations for improvement. You'll then need to act to enhance your financial reporting, internal controls or operations. Use the audit as a springboard for continual improvement.

By following these straightforward steps, you have the chance to add value to your business and maximise the impact of the audit. But if you're interested in having a more detailed discussion about how to approach the process, why not give Page Kirk a call? You can reach us on 0115 955 5500. Alternatively, email us at enquires@pagekirk.co.uk.